Disney, one of the world’s leading family entertainment companies, is today recovering from a hostile takeover bid.
Cable television company, Comcast, tabled a $62bn (£30bn) bid for Disney in what could be the beginning of one of the bloodiest coups in recent corporate history.
Disney immediately rejected the bid, but shares in the group soared as traders expected a rival suitor to join the battle.
The news of the takeover bid came just hours before Disney announced sharply improved results for its parks and resorts business.
Revenue from the theme parks increased five per cent to $1.6bn (£848m) during the first quarter, while operating income rose three per cent to $232m (£123m).
The company said that higher visitor numbers in the US were helped by promotional programs and the opening of the Mission:SPACE attraction at Epcot.
Disney also said that Euro Disney is having discussions with its agent banks to obtain supplemental financing. However, the company concluded that it will have to consolidate Euro Disney and Hong Kong Disneyland in the second quarter of 2004.
Should Comcast succeed in its efforts to capture the Disney empire, it would acquire a wide range of assets, ranging from the ABC television network and a number of film studios to branded toys and accessories as well as the theme parks.
Announcing its bid yesterday, Comcast said it planned to “restore the Disney brand to prominence”.
The takeover bid increases the unease of Disney chief executive, Michael Eisner, who was recently blamed for the termination of the company's relationship with Pixar.
With Pixar, Disney produced a number of hit movies including
Finding Nemo and
Toy Story. The breakdown of the association was blamed on the personal relationship between Eisner and Pixar chief, Steve Jobs.
If successful – and measured by market value – the bid would create the world’s largest media group, surpassing Time Warner and combining leading brands such as ABC, ESPN and E!.
Comcast has a market value of around $69bn, and has over five million broadband and 40 million cable customers.
The takeover bid comes just a week after John Hench, the 'guru of Disney design', died at the age of 95.
Hench contributed to designing the Disney theme parks worldwide, while becoming the official portrait artist of Mickey Mouse. Details: www.disney.com
